April Special Selections for Mother s Day. wedding bands overnight. JA Cost of Doing Business Survey Released. Color Stories 2008.

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1 April 2008 Special Selections for Mother s Day wedding bands overnight JA Cost of Doing Business Survey Released Color Stories 2008 Blue Music

2 SIGHTHOLDER DIAMOND TRADING COMPANY With Stuller as your DTC Sightholder, buying small diamonds has never been easier. We stock it, so you don t have to. We match it, to save you effort. We can even set it, so you can spend more time selling. We deliver, so you don t have to wait. No risk. No hassle. No work. No worry. Real value, the easy way. Stuller. The beauty of it all. Diamonds The Easy Way to Buy Diamonds Stuller, Inc. is a Diamond Trading Company (DTC) Sightholder

3 C O N T E N T S contents A P R I L I s s u e stuller & IndustRy news 6 catalog resources bridal bands & engagements trade shows meet us there 7 retailer growth new cost of doing business survey 8 what s new pearl & gemstone fashions 9 what s hot diamond solitaire tradeups features 20 Special Gift Selections for the Coming Selling Season 10 Red Box Diamonds your dtc sightholder solution 11 Black Box Gemstones serene teal 12 DPS diamond facets competing in AGS conclave members only benefits trends & fashion 16 gifts for mom style that lasts 18 color stories 2008 beautiful blue music 22 rosary rings take them everywhere you go 3b 3b 5b 6b 7b 7b 9b At the bench comfort-fit shanks style & comfort stuller expert belit myers master s touch palladium plating breakthrough inside stuller receiving custom designs your creative bench designs optimum weld comprehensive laser wire selection study in colorado basic bench work to jeweler s art On our cover: DMGR11-4mm, F11-8mm, 5056, 50186, 5962, 5977, 5969, HR11-6mm and IR11-8mm 8b Pop Open the Euricase to Present the Perfect Proposal at you can order products, create customized advertising and interact with our bench experts through the forums! APRIL the stuller standard

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5 E D I T O R I A L notes from Chuck these ARE INtEREstING AND challenging times. All of us in the jewelry industry are experiencing sticker shock, as the result of precious metals prices reaching all-time highs. In many respects, the world precious metal markets are much like weather and taxes. While we have no influence over them, we learn to live with them and make necessary adjustments. Years ago, Matt Stuller told me that: As long as there is love, lust, and guilt, the jewelry industry will be just fine! While jewelry, as a product category, has growing competition for the luxury dollar, we know that every day of the year consumers have occasions that can be celebrated by a gift of fine jewelry. Jewelry is still the most popular gift of choice for the seasons and events that are just around the corner. Mother s Day, Father s Day, confirmations, graduations, and the ever-present bridal market cause us to realize that the glass is not half empty; rather, the glass is half full! At the same time, however, we are witnessing some modest shifts in product mix and consumer behavior. Alternative metals and materials are entering the jewelry product arena; while we witness the growing popularity of silver jewelry and silver with gold and semiprecious gemstones. Today, it is especially important that we critique our everyday operations and aggressively pursue the concept of constant improvement. This is the ideal time for jewelers to turn to Stuller as a just-in-time supplier. You can also leverage your open-to-buy dollars by taking advantage of Stuller s various alloy programs, with live goods delivered to your store next day! Please know that Stuller is committed to helping you optimize your profitability. Let us know of any unique ways Stuller can help your business compete in today s marketplace. CHUCK LEIN PResIdent & Coo CEO AND CHAIRMAN Matthew G. Stuller, Sr. president/coo Dr. Chuck Lein EXEC. Vp, MERCHANDIsING & MARkEtING Harold Dupuy, G.G. EXEC. DIRECtOR, MARkEtING services Kerry Hand EDItOR IN CHIEf Miriam Werquin stullerstandard@stuller.com staff CONtRIbutING writers Keri Bolfer Lori Carter, Mgr. Leslie Dumatrait, D&G Asst. Marketing Manager Ramona Gautreaux, D&G Marketing Manager Steve MacDiarmid, PR/Trade Shows Director Sarah Bradshaw Susan Kiefer DEsIGN Jacqui Cheramie, Director stuller standard ONlINE Trenton Bolfer, Mgr. Ron Domingue Kim Thibodeaux, Mgr. info@stuller.com CONtACt us stullerstandard@ stuller.com Stuller Standard Magazine P.O. Box Lafayette, LA fax photography Frank Centrilla, Sr. Photographer Maggie Hidalgo Noelle White, Photographer Marie Vest production Maureen Benjamin Lori Bouillion Leslie Dumatrait Shannon Guidry, Mgr. Missy Kruger Brenda Landry, Mgr. Yolanda Laviolette Robert Lawson Stephanie Pellerin Kisha Thompson CONtRIbutING writers Emmy Kondo Nancy Pier Sindt Deborah A. Yonick product MANAGEMENt CONtRIbutORs Kathleen Blanchard, Diamond Fashion Nathan Button, Findings Chookie Diaz, Metal Fashion Dottie Lukaszeski, Metals Eleanor Lipps, G.G., Bridal James Louviere, Symbolic Mary Mouton, Mountings Denise Quebedeaux, Color Fashion Sandi Segura, Packaging & Display Virginia Stuller, Stuller Pearls Jodi Venable, Tools EDItORIAl ADVIsORy board Linus Cortez, EVP, Finance Bob Cox, EVP, Sales Jay Jackson, EVP, Logistics Jack McKay, EVP, IT Chuck Bowman, BVP, Mountings Elizabeth Brehmer, BVP, Findings Michael Clarke, BVP, Finished Jewelry Joe Orlando, BVP, Gemstones J.P. Walrond, BVP, Bridal Jewelry Darrell Warren, BVP, Tools & Supplies/Metals Stanley Zale, BVP, Diamonds 2008, Stuller, Inc. All rights reserved. Stuller, Inc. is a Diamond Trading Company (DTC) Sightholder. APRIL the stuller standard 5

6 C ATA L O G R E S O U R C E S Show the range of your business with our Perfect Pair the Bridal Semi Mount Engagement and Wedding Band books. Catalog Resources It s all inside: 3-stone semi, cathedral, and Celtic styles, contemporary styling, antique-inspired designs and pavé styles. Note our new natural yellow diamond accented styles! Bands from classic best sellers to the exotic are all in stock and ready for next day delivery. Wow your customers by showing them 3-stone and multi-stone anniversary bands, titanium and stainless steel bands, and fancy stackable and gold bands. Order Bridal Semi Mounts, Vol. 64 and Bridal Bands, Vol. 65 today at or by calling MJSA s 40th Annual Expo New York Stuller s Brehmer teaches seminar on how to bring your new product idea to life AT MJSA s EXPO NEW YORK SHOW APRIL 13-15, attendees will have an opportunity to attend educational seminars, Thinking Ahead innovation sessions, the MJSA Innovation and Vision Awards presentations and the Good Libations networking cocktail party. Elizabeth Brehmer with Stuller will present, So You Have a Great Product Idea, What Next? as one of a number of educational training seminars at the Jacob K. Javits Convention Center in New York. The topics include design and business, as well as several At the Bench Live demonstrations. The program also includes the debut of Technique Tuesday, which offers hands-on training by Swarovski and Beadalon experts. We re very excited about the quality of this year s educational program, especially with the high level of business and practical expertise that our presenters bring to the table, says Teresa Shannon, MJSA director of education. Attendees will have the opportunity to learn from some of the most renowned experts in the industry on everything from making their businesses more profitable to valuable tips, tricks, and techniques on making high-quality jewelry pieces. Seminars are $50 each for MJSA members; $75 each for non-members. Technique Tuesday workshops are $20 each for MJSA members; $25 each for non-members. There will be an additional $10 fee for each seminar and workshop registered onsite. For more information or to register for the show or any of the above seminars, please visit mjsa.org. Among the other benefits to the industry from the Expo are the free Thinking Ahead innovation sessions, which are funded in part by a grant from the JCK Jewelry Industry Fund. Sessions will provide information and tips on how to unlock a business s potential and ensure ideas are translated into profits. Sessions include: How to Unlock Your Potential in a High Velocity Economy, The Five Faces of Genius, Transforming Imagination: Cross- Industry Creativity, Reliability Centered Maintenance: The Bottom Line, and Don t Hide Your Innovation. On April 13, MJSA will hold the Vision Awards presentation at 12:30 p.m., the Innovation Awards presentation at 1 p.m. and the Good Libations networking cocktail party from 5 to 6 p.m. For more information or to register for the show and special events, visit Trade Shows Mark your calendar; we ll see you there! April 9-12, AGS Conclave Seattle, (Members Only) April 1-15, MJSA Expo New York, Javits Conv. Center, Booth , , April 26-27, Bench Jewelers Conf. & Expo, Los Angeles, Booth May 29-June 2, AGTA Gemfair, Las Vegas, Grand Ballroom, Venetian Hotel, Booth May 0-June, JCK Las Vegas, Sands Expo & Conv. Center, Plumb Club Pavilion PC 43, ETS Booths & July 8-10, NPA Annual Conv. & Expo, (Members Only), Bally s Las Vegas July 1-14, Fast Fix Convention, (Members Only), Paris Hotel; Las Vegas July 14-15, Leading Jewelers (Members Only), The Island Hotel, Newport Beach, CA 6 the stuller standard APRIL 2008

7 S T U L L E R N E W S 2007 Cost of Doing Business Survey Released Survey says JA member retailers experiencing growth Jewelers of America (JA), the national association of retail jewelers, has released the JA 2007 Cost of Doing Business Survey, which analyzes JA member stores financial data from The JA 2007 Cost of Doing Business Survey represents the most complete comparative financial information available to retail jewelers in the U.S. JA compiles data from a cross section of retail jewelers: independent high-end and independent mid-range firms, jewelry chains, and designer or custom jewelers all responded. Sales Growth & Profit The results for 2006 report good news for JA members: all retail categories saw sales growth, although it was varied. The median growth for all jewelers was 4.1% (up slightly from 3.9% in 2005). Independent highend retailers fared best with a 7.4% sales increase over 2005, which is in keeping with 7.1% growth of jewelry sales nationwide, according to IDEX Magazine. Designer Chart 1. Net Profit as Percent of Net Sales 8% 7.3% 7% 6.5% 6.4% and custom retailers also saw great growth at 6% 6.1% 5.6% 6.5%. Chain stores 5.3% experienced 4.3% 5% 4.6% 4.3% 4.2% 4.4% sales growth, while 4% 3.9% 4.0% mid-range retailers 3% 2% 3.1% had the least growth with only 1% 0 2.4% increase over 2005 sales. The good news continued as 2006 store profitability saw a significant 32% increase over 2005 results; in 2006, JA retailers had a median 5.3% net profit as a percent of net sales compared to last year s 4% [Chart 1]. Although gross margins fell last year, the overall gross margin was up to 49.1% from 48.4% in Share of Sales The Survey shows that the distribution of sales remains consistent from year to year. Diamonds (loose and set) are still in the majority with 50% of sales. Colored stone jewelry (10%) and karat gold (8%) Chart 2. Comparative Financial & Operating Ratios High Profit vs. Low Profit Firms Performance measure HigH-Profit Low-Profit EBIT to Total Assets 17.4% 4.2% Net Profit Pre Taxes to Net Sales 9.5% 1.5% Asset Turnover (net sales/total assets) 1.6X 1.5X Inventory Turnover 1.2X 1.0X Sales Per Square Foot Total $ $ Sales Per Full Time Employee $223,304 $204,060 Sales Growth 6.8% 3.7% Total Debt to Total Assets 52.4% 58.7% Current Ratio Sales Per Store $985,500 1,179,904 Store Size 1,888 2, provide the other two largest shares of retailers sales. High-Profit vs. Low-Profit Stores Since growth is becoming more varied, it is clear that effectively managing and marketing is vital to the success of retail stores, and differentiates high-profit from low-profit firms. While high-profit stores in 2006 did not necessarily have greater sales per store ($985,000 on average compared to $1,179,000 for lowprofit stores), they did have characteristics of efficient management: higher sales per square foot and turnover frequency, but lower payroll and operating expenses. For instance, high-profit stores had a 20% greater inventory turnover than low-profit firms and, therefore, much higher sales growth (6.8% versus 3.7%) [Chart 2]. High-profit retailers also contain their operating expenses by spending a lower percentage of net sales on payroll (17.8% compared to the average of 22.4% of low-profit firms). In fact, high-profit retailers are so efficient at saving on occupancy, advertising, and other related expenses, that they spent 7.2% less on total operating expenses than low-profit companies in 2006 [Chart 3]. Improve Retail Performance with Cost of Doing Business Survey The JA Cost of Doing Business Survey is crucial to a retailer s understanding of how best to manage his or her business. Reviewing the 2007 Survey can help retailers generate greater profits, as comparing individual data can help a retail owner or manager judge where opportunities for improvement lie and prioritize them. The Survey contains 75 pages of data tables that measure key performance areas like expenses, sales growth and inventory. To order the 2007 Cost of Doing Business Survey, visit or call Jewelers of America at It is available to JA members for $24.95, and to non-members for $150. For more information about Jewelers of America, visit Chart 3. Comparative Income Statement High-Profit vs. Low-Profit Firms HigH-Profit Low-Profit Net Sales 100% 100% Cost of Goods Sold 52.3% 50.9% Gross Margin 47.7% 49.1% operating expenses: Payroll (Incl. Benefits) 17.8% 22.4% Occupancy 4.6% 6.1% Advertising & Promotion 4.4% 5.1% Employee Training & Ed. 0.2% 0.2% Other Operating Expenses 7.9% 10.8% Total Operating Expense 37.4% 44.6% Operating Profit 10.1% 2.8% Interest Expense 0.9% 1.2% Other Income/Exp. 0.2% 0.3% Profit Before Taxes 9.5% 1.4% APRIL the stuller standard 7

8 W H AT S N E W serene Sophisticated Cultured Pearls Have a little fun with pearls in this Genie in the Bottle style pendant and earring ensemble Paspaley South Sea cultured pearls set in 14kt gold with diamond accents are fashionably correct and surprisingly affordable. Perfectly weighted pendant stays centered with the design forward. Beautiful lines make it elegant and desirable. Ear hooks make the earrings easy to wear and keeps them in a perfect position on the ear To see more of our fashionable pearl selections, go to or look through The Finished Jewelry Collection, Vol. 67. For additional information, contact your sales consultant at , ext what s new what s new new Diffused Topaz Paradise & Ice Blue! Paradise Blue Diffused Topaz Ice Blue Diffused Topaz Turn up the heat on your sales with these new colors of diffused Topaz. The color of these beauties is enhanced using the patented Pollak Heat Diffusion Process. The result is a more stable and permanent color. Teal Diffused Topaz The is shown set with a teal Diffused Topaz. Different colors of Diffused Topaz can be set, sized and polished through Stuller Studio and shipped to you within five working days. To see our full range of diamonds and gemstones, see our Diamond & Gemstone Book, Vol. 66. To see our full range of colored stone mountings, refer to The Mountings Book, Vol. 55. To order, go to 8 the stuller standard APRIL 2008

9 W H AT S H O T the Largest Selection of Gold & Platinum Bands For fast overnight delivery of quality traditional gold and platinum wedding bands Stuller is your source. Whether you need a half round, half round light, half round edge, half round tapered, milgrain, milgrain light, comfort fit milgrain, comfort fit milgrain light, comfort fit, comfort fit light, comfort fit heavy, comfort fit square, comfort fit knife edge, flat, flat edge, flat tapered or flat inside round Stuller has it and we stock numerous millimeter widths and finger sizes to fill most any request. FIR9-5mm (Shown with Florentine finish) MGR7-6mm Most bands are stocked in platinum, 18kt, 14kt and 10kt and can be customized with personalized engraved messages. We also offer special finishes such as hammer, satin and florentine. For a complete offering reference our Bridal Bands Collection Vol. 65. IR7-4mm what s hot what s hot diamond Solitaire earrings Trade In to Trade Up Maximize inventory value by using your Stuller Diamonds to advantage. Solitaire diamond earrings purchased from Stuller after July 2004 are eligible for trade-in The diamond earrings being exchanged must be a minimum of 0.15 ct tw, have no alterations and have only minimal wear. The new, higher-value pair may be ordered at the time of the return or within 10 days prior to the return. Be sure to reference the reorder on the return form. To view the newest collection of Solitaire Diamond Earrings, visit or check out the Finished Jewelry Collection, Vol. 67. For additional information, contact your sales consultant at APRIL the stuller standard 9

10 A B O U T D I A M O N D S your direct source for diamonds Stuller renamed Sightholder by DTC as announced in the February Stuller Standard, we are proud of our successful reapplication for continuing our elite position with the Diamond Trading Company (DTC), the distribution arm of DeBeers. This agreement with the DTC will be for the Supplier of Choice contract period. Stuller s chairman and CEO, Matthew Stuller, notes that: We are very pleased to again be named a DTC Sightholder, which reconfirms that our company is a prime diamond source. This reappointment validates Stuller s continued commitment to providing diamonds for our customers in the most efficient and cost effective manner. Stuller is proud to be one of only 79 Sightholders in the world. As a DTC Sightholder, Stuller will continue to receive rough diamonds directly from the world s leading rough diamond supplier, which will enable the company to provide a wide range of diamonds directly from diamond mines to retailers. You can be assured that when you buy from Stuller, you will receive the best and most consistent quality, service, selection and value. Our goal is to have what you need, when you need it. As a Sightholder, we are able to provide our customers with a full range of diamond shapes, cuts and qualities, notes Harold Dupuy, executive vice president of merchandising and marketing. We are firmly committed to being a vital diamond resource. Being reselected as a Sightholder by the DTC is a powerful tool for bringing value to the entire diamond supply chain, says Stanley Zale, business vice president of Diamonds. This is a wonderful confirmation of Stuller s continued efforts to serve as the first choice for diamonds by North American jewelers. The value-added services Stuller offers center around broad selection, just in time inventory, custom jewelry through Stuller Studio, and the Red Box Diamond program. In addition, an extensive offering of calibrated diamonds from melee to 1/3 carat provides a complete selection for both bench jewelers and retailers. Experience the Beauty of it all when you buy diamonds from Stuller: consistent quality, service, selection and value. To view a complete, current listing of diamond products, please visit us at or call to speak with your diamond specialist at , and press 5. enjoy 3 ct plus high quality diamonds Red Box Diamonds Serial Shape Clarity Color Wgt. Sale/Ct % off rap 81435** Square VS1 G 3.00 $11, % 82628** Square VS1 G 3.01 $12, % 90252** Square VS1 G 3.15 $13, % 99206** Square VS1 G 4.01 $15, % ** Square VS1 I 3.52 $9, % ** Square VS2 G 3.29 $11, % ** Square VVS2 G 3.77 $15, % ** Square VVS2 I 3.30 $9, % 54587** Round VS1 F 3.05 $16, % 74758** Round VS1 I 3.01 $11, % 75224** Round VS2 D 3.01 $18, % 71899*** Round VS2 E 3.00 $18, % 72111** Radiant VS1 F 3.04 $12, % 71833** Radiant VS2 F 3.01 $11, % * Pear Shape VS2 F 3.17 $13, % 95936** Heart Shape VS2 I 3.01 $7, % ** Emerald Cut VS1 H 3.02 $10, % ** Cushion VS1 F 3.01 $14, % 70519*** Cushion VS1 H 3.02 $8, % *** Cushion VS1 I 6.11 $10, % 95932*** Cushion VS2 G 3.12 $10, % * Cushion VS2 I 4.08 $10, % ** Cushion VS2 I 3.15 $7, % ** Asscher VS1 G 3.08 $13, % * Asscher VS2 H 3.51 $9, % Serial #s noted with * have Stuller grading report; those with ** have a GIA grading report; those with *** have other report. Pricing is jeweler cost. 10 the stuller standard APRIL 2008

11 ABOUT GEMSTONES t optimistic. tranquil. energetic. The Story of Teal he Story of Teal 1970s and 80s, will highlight bright teal. Bordering between green Teal is a popular accent hue, adding fun and and blue is teal. Uplifting, complexity to brown, pink and black. energetic and chic, teal has the earthy quality of green Teal and the Personality combined with the lofty nature of blue What does teal say about your making it a perfect color choice for personality? Teal lovers are confident and customers who are down to earth yet sophisticated. They are compassionate sophisticated in style. and faithful, protective and serene. Those Native American s believed teal attracted to teal have a positive outlook represented water and fertility Teal Diffused Topaz and diamond ring, 14kt on life. They balance a dreamy view with According to Leatrice Eiseman s book, white shown with 9.01 ct emerald-cut, Black a realistic nature. This allows them to be Color: Messages and Meaning Tibetan Box Indicolite, 14kt white. (CH128, sold separately.) creative innovators. monks also believed teal was symbolic kt white oval blue Paraiba Tourmaline and Teal, as with most blues, looks fantastic diamond pendant (CH19, sold separately.) of the infinity of the sea and sky. For on almost everyone. Teal options for Prices of finished pieces varies with gem selection. the Egyptians, it was the color of truth jewelry include Blue Zircon, Turquoise, and faith. shades of Blue Topaz, Teal Diffused Topaz and color-enhanced Blue Diamond. The Tourmaline family of gems has Teal in Fashion amazing and unusual teal options; blue/green Tourmaline, the deeply In fashion, teal remains a hot color. The Blue Music color story colored Indicolite and dazzling Paraiba Tourmaline are gems to show demonstrates the popularity of this hue and highlights fashions with customers looking for extraordinary elegance. variegated coloring and flowing lines. Mod-inspired designs, a spin-off of the Help your customers find their ideal gems by focusing on color first. Selling Teal It impressed me to learn that Mars, Inc., the makers of M&M candies, employ color trend experts whose job it is to make sure that candy colors reflect the marketplace and current trends. While the basic bag of M&M s contain the standard red, brown, orange, yellow, green and blue M&M s come in a variety of customizable colors like teal, gold, purple and maroon. Trend experts make sure that the colors offered reflect consumer desires. What can we learn from companies like Mars, Inc? First, we can understand that for many shoppers, color equals identity. Secondly, the ability to select a color that matches a person s personality, complexion, wardrobe or lifestyle is an aspect of the shopping experience upon which jewelry retailers can capitalize. Finally, grouping gems by color, and focusing the sales message on personalization opens an entire world of gemstones to your customers. Teal is our color of the month for April. Our teal image reflects water and sky and with a touch of brown, shows the versatility of this hue. You can promote Teal whenever you desire. If you choose to promote teal in April, be sure to take advantage of the special on Tealcolored Diffused Topaz; check your Diamond & Gemstone calendar for details. Mozambique Blue Paraiba Tourmaline Direct from Mozambique, the electric hue of this Tourmaline inspires feelings of truth and faith. Paraiba Tourmaline is available as part of the Black Box Gemstone collection or in the calibrated shapes and sizes listed below. Feature this uniquely colored gemstone in your Teal showcase. Oval Tourmaline Aprx. MM Size Avg. Wt. A AA AAA 5x $600 ct $800 ct * 6x $600 ct $800 ct $950 ct 7x $600 ct $800 ct $950 ct 8x $775 ct $1075 ct $1500 ct 9x $900 ct $1250 ct $1650 ct 10x $1050 ct $1350 ct $2025 ct Round Tourmaline Aprx. MM Size Avg. Wt. A AA AAA $575 ct $725 ct * $575 ct $725 ct * $575 ct $725 ct * $575 ct $725 ct * $600 ct $800 ct $975 ct $600 ct $800 ct $975 ct $600 ct $800 ct $975 ct Prices listed are jeweler s cost in U.S. Dollars and are subject to change without notice, while supplies last. APRIL THE STULLER STANDARD 11

12 DPS COLUMN tdps diam nd facets Diamond Promotional Service: Learning from Strong Retail Sectors he jewelry industry, like the rest of the retail sector, to segment, the most profitable pieces to produce and stock, and had a less than stellar holiday season. The brightest to pursue marketing and communication efforts in ever more costefficient and targeted ways. If you have been lax about using your spots in retail now are represented by segments of the electronics and luxury categories. What can jewelry database effectively or about collecting the best data to help you retailers learn from these competitors to gain more build sales, now is the time to begin to enrich your understanding share of wallet in the coming year? of where you are now and where you could be by collecting, analyzing and putting to use more information about your existing, Five lessons to help build you compete in 2008: potential and lapsed customers. 1. Help Your Customer Create A Story That Justifies Purchase: Consumers today are looking for strong justifications before making large purchases, as opposed to the impulse buying that characterized much of the past five years. Wal-Mart is helping consumers justify flat-panel TVs by talking about them as a centerpiece of home décor, a way of investing in quality time with their families and spending less going out. And high-end luxury brands like Hermes and Manolo Blahnik help consumers justify well-constructed classic luxury pieces like handbags, shoes, and apparel as status-building, timeless wardrobe investments that will carry them through multiple fashion seasons. Jewelers have a strong court here that they don t always use to full advantage: Diamonds offer amazing justifying narratives the most important being love, connection, and pride in relationship and life milestones, but secondary justifications being diamonds importance and timelessness as indicators of sophistication, style and status. Talk to your customers about why they are buying: Help them create an irresistible story for themselves about why diamond jewelry is the only way to celebrate the specialness of the occasion, or the person for whom they are buying. 2. Create Must-Have Items: The electronics industry has been immeasurably boosted by Apple s relentless product innovation. Competitors have been forced to follow suit, and as a result consumers have been seeing new concepts they feel they can t live without. Diamond jewelry works similarly: From the 3-stone ring to fashion rings to Journey pieces, consumer demand has been driven by our industry s ability to tap into consumers dreams and desires. By understanding your own customers needs and desires, and the preferences of influential women in your community who will lead new trends, you can tailor your inventory and marketing plan to really drive desire and create mini-trends within your particular market. 3. Slice-and Dice: Both the electronics and the luxury categories are becoming leaner, meaner and more sophisticated by collecting as much data as possible about their customers and potential customers, and using the data to analyze the most valuable targets 4. Avoid Confusing Discounting: One reason the electronics category as a whole is growing is because of the fiercely competitive price wars between players and downward price spiral. With a very few exceptions, consumers truly see this as a category of commodities, and have little loyalty to particular retailers. The luxury category has done a better job of growing itself through competition. By refusing to go to war on price, luxury brands and retailers are realizing better margins and also creating a stronger perception for consumers of lasting value, true quality and the importance of craftsmanship and design. This model is one that is also critical for the diamond jewelry category. When consumers are constantly seeing markdowns and specials, they stop believing in the intrinsic worth and quality of the product and also in the integrity of its retailer. 5. Offer Exemplary Service: The best luxury retailers create mesmerizing environments and provide over-the-top service that leave consumers feeling pampered, surprised, delighted and valued. It s an age-old trick for removing the sting of a purchase and making the experience count as an important part of the benefit provided. The electronics industry is for the most part unable to fulfill this level of service. It s an area on which the diamondjewelry category can capitalize. So now, more than ever, is the time to focus on the customer experience, putting a magnifying glass on every aspect of your retail environment, displays and packaging, and on training and guiding each and every associate to make that customer experience truly go above-and-beyond the expected. Remember, that your best customers will stick with you if you continually surpass their expectations. As Neiman Marcus CEO Burt Tansky told analysts in a December conference call, the true luxury consumer does not trade down, she does not change venues, she does not leave us. What she does [in a downturn] she ll buy a little less. Editor s Note: This is part of a running series from the Diamond Promotion Service. This installment was written by Emmy Kondo, DPS planning director. 12 THE STULLER STANDARD APRIL 2008

13 there will be winners and losers in this economy, but only those jewelers who arm themselves with industry knowledge and are willing to take action toward positive change will carry their organization into a successful future. If you want to increase your competitive edge and be a frontrunner down the long road ahead, make continuing education part of your strategy. What better format to profit from these opportunities than during the trade shows you regularly attend? Trade shows are an ideal venue to obtain business and market trends and ideas you need to strategize, improve operations, and make smart decisions that can expand your business and increase productivity and profitability. Many trade shows offer a litany of seminars and training sessions, most often free, by industry insiders. Jewelers benefit from attending educational programs in two ways it impacts them as small business owners and also as participants in a global trade community, explains Charlotte Preston, president of Charlotte Preston Catalysts, Inc. in White Bear Lake, MN. Preston, who organizes comprehensive educational programs for such major trade events as the JCK Las Vegas Show in June and the American Gem Trade Association (AGTA) GemFair in February, says the business insights and training offered are invaluable. These programs can revitalize the spirit and elevate motivation, impart information on current business hazards, provide networking opportunities with peers, and offer a chance to mingle with the thought leaders of our industry. Acquire To those jewelers who think they have no time to attend a seminar at a trade show, think again. At the very least, making time for seminars gives you a mental break, like sorbet to cleanse the palate, as you use your brain in a different way, says Preston. It also provides a physical rest from the show floor. store strategy Getting maximum return from trade show seminars Speaking as an independent jeweler, you basically spend your days with your head down plowing through things on your desk, says Stephen Faber, owner LeRoy Jewelers, Tacoma, WA. Seminars allow us to lift our heads out of the sand and stand on a hill to see what is happening around us. Running a small business, especially in today s economy, is an insular thing. At show seminars, you get to see so much from one place. Faber enjoys attending bench workshops like those offered by Stuller at trade events, including the AGTA GemFair. I recently attended a Stuller seminar on stone setting, he says. Although I ve been setting stones for 35 years, I left the session refreshed, reassured, and remembering things I d forgotten. I also came away with a new idea on how to use an old tool. Some topics are more popular than others, says Preston. Jewelers are most interested in sessions on profitability. But they often pass up seminars that discuss business hazards, insurance or security issues. The irony is those are sessions that can really help address retaining and maximizing profits. Certainly not all seminars are jammed packed with totally new information, tells Faber s wife, Phyllis Harrison. However, she says she always walks away with at least one nugget, even if it s just the moral support of an expert saying you re doing something right. She also enjoys the chance to rub elbows with fellow jewelers and experts in the field. Apply Seminar attendance is most effective when jewelers come with the intent to apply, stresses Preston. First, make the decision to be creative and forward listening. Second, give yourself a timeline to apply specifically identified strategies learned. Finally, hold yourself accountable. Have a colleague essentially lieutenant the application. Implementation is key. But translating the information obtained STORE STRAT E G Y to your staff can be more challenging than it sounds, says Bill Sites, owner of Sites Jewelers in Clarksville and Ward-Potts Jewelers in Nashville, TN. I listen intently and feverishly take notes, but when I get back to my staff I feel as if the sparkle of the presentation gets lost in the translation. He says educational programs that offer support material can help jewelers more effectively relay information. One application strategy that is grossly overlooked by attendees, says Preston, is following up with the presenter. Most presenters would welcome s or calls to answer questions or offer more insights. So few take advantage of that. Harrison says that some ideas take time to implement. Faber explains that once you get back from a show, you have a week s worth of stuff piled up on your desk and your head finds its way back in the sand. In Tucson a couple of years ago, we learned about these gemstone round tables special after-hour events where lapidaries bring their special work to show your best clients; it s a very focused event, explains Harrison. It took us 18 months to discuss it, plan it, and actually make it happen. But when we did, it was a great success and something we ll do again. But the couple notes that there are things jewelers can implement right away, like tips about mailing lists and buying list suggestions. Harrison picked up information in Tucson about a Ladies Night Out event that she is working on for the spring. She also enjoys learning things about gem mining that she can use in her sales presentation. Faber continues that he gains great insights from sessions given by the laboratories on hot topics like lead glass filled rubies. Now we no longer assume any ruby is okay with heat. We will look at every one to determine if it is lead glass filled. If we had known that last summer we would have saved ourselves replacing a ruby. Keeping up with happenings in the market, like treatments, make us more effective in educating our customers. The smarter our customers are, the better off we are. By Deborah A. Yonick APRIL THE STULLER STANDARD 13

14 S T U L L E R PA R T N E R t AGS Conclave Members Only meeting features marketing experts, timely seminars he American Gem Society Conclave, recognized as one of Gemstone Values aim at helping retailers improve professional skills. the industry s premier education and networking events, In addition to the educational aspects, daily Conclave activities will kick off its program with two renowned marketing include breakfasts, luncheons and cocktail receptions offering the experts as keynote speakers. opportunity to meet and network with industry leaders. Finally, if Heading this year s convention program will Malcolm attendees can find any leisure time, the city itself promises a wealth Gladwell, author of two New York Times bestsellers, The of unique attractions. In close proximity to the Sheraton Hotel are Tipping Point and Blink; and Martin Lindstrom, author, consultant, speaker, and brand guru. The American Gem Society s International Conclave will be held in Seattle, WA, April 9-12, 2008 at the Sheraton Seattle. When he was a staff writer for The New Yorker, Gladwell embedded the concept of The Tipping Point into everyday business culture with his first book of the same name. It enjoyed 28 weeks on the New York gourmet restaurants, the historical Pike Place Market, the Space Needle and the Seattle Art Museum. The 2008 American Gem Society International Conclave is open only to members and invited guests of AGS. For more information on the 2008 American Gem Society International Conclave, please contact Wendy Stevenson at conclave08@ags.org or toll-free at extension Times bestseller list and currently has 800,000 copies in print. Among his famous fans are Starbucks recently reinstated CEO, Howard Schultz, who attributed his company s success to the tipping-point phenomenon, and Matt Kahn, director of corporate marketing for Glaceau, who makes The Tipping Point required reading for his 35- person marketing team. Martin Lindstrom, who started marketing at age 12 with a trainee position in the LEGO design department, has more than 20 years experience in hands-on marketing. He has developed a unique method of branding that rejects the old rules of conceptual branding and instead endorses a scientific and process-based method of branding. His insight guided the development of BBDO Interactive Europe and Asia both the largest Internet solutions companies in their regions all before the age of 30. He is one of the most respected brand experts in the world, whose clients include Pepsi, McDonald s, Kellogg s, Visa, How to Become a Member Applicants must have completed an accredited or graduate program from one of two industry education leaders: Gemological Institute of America (GIA) or the Gemmological Association of Great Britain (Gem-A). This requirement can be met by the firm s owners, principals or employees. The qualifying member must have completed additional studies with AGS. Applicants must have been in the retail, supplier or independent appraisal business for at least two years and be fiscally stable. Unquestioned integrity must be a benchmark of the firm, which should instill public confidence in the jewelry industry. Owners must have demonstrated their deep interest in operating under the highest ethical standards. Members must also pass annual Recertification Examinations to maintain their AGS titles. Currently, Stuller has six AGS titleholders on its staff. and Mercedes Benz. Other seminars and discussions cover a host of topics from practical business tips to product knowledge to ethical concerns. Of high interest are programs dealing with the identification and marketing of specific gemstones, as well as treatments of corundum, diamonds and pearls. Due to the popularity of the subject, a diamond cutting and cleaving demonstration will be offered at four different times. What is the AGS? The American Gem Society was founded in 1934 by Robert M. Shipley, as a not-for-profit trade association dedicated to proven ethics, knowledge, and consumer protection within the jewelry industry. Today, there are 7,000 members of this international professional organization that includes Registered Jewelers (RJ), Certified Finally, seminars Gemologists (CG), and Certified Gemologist titled, Closing Our Commitment to AGS Appraisers (CGA). For more information Sales with Credit regarding the American Gem Society, please Stuller currently has six AGS titleholders: Registered Financing, Handling call , or visit the website at Suppliers: J.P. Walrond and Michael Turner; and Certified Challenging Customer Gemologists Eleanor B. Lipps, Tu Thanh Tranh, Mindi M. Objections and Researching Diamond and Courville, and Gary James Venable. These titleholders are a symbol of AGS and Stuller's commitment to supporting ethical business practices. By Nancy Pier Sindt 14 the stuller standard april 2008

15 jeweler s voice Stuller Studio Your Customized Jewelry Solution! Stuller Studio makes all your customized jewelry needs easy. Whether it is a piece of jewelry complete from wax to sized and set, a semi-mounted item, or a simple ring sizing, the Studio operates as your own bench in the back room. We provide quality services at competitive prices to help you meet your customer s price points. To find out more about how Stuller Studio works, go to select a ring and click on the Customize link, or call There are times in every jeweler s life when he falls in love with a certain diamond or fine piece of jewelry my love is Bisbee Blue Turquoise. And in my 20 years as a jewelry dealer purchasing parts from Stuller, I have had many exciting and beautiful pieces of jewelry set through Stuller Studio (formerly Have It Your Way). Most recently, Stuller Studio set diamonds into a pendant and ring for me, which I later set with Bisbee Turquoise centers. Stuller Studio makes my jewelry a resounding success! Charles Stevenson, C&C Wholesaler MOUNTING 8276 SET WITH BISBEE TURQUOISE FIND OUT MORE ON PAGE 7B

16 Make Mother s Day special appeal to MoM s tender side A A B F G G E F G C R41700 Back of pendant enlarged to show detail B J C H D E H J D A. BRC302 Mother and Child Bracelet, 1.75mm, 14kt white 7 $773. B Agate Cameo Pendant, 21.2mm x 16.2mm, 14kt white, 134 $228. (Shown with CH164, sold separately) C Mother and Child Pendant, 20.5mm x 13.5mm, 14kt yellow, $338. (Shown with CH12, sold separately) D Genuine Blue Sapphire & Diamond Anniversary Band,2.5mm, 1/5 ct tw, 14kt white,67,30 $ Genuine Blue Sapphire Anniversary Band,14kt white, 67 $408. E Stackable Ring Mounting for Mother, 3mm width. 1-Stone, 1-5mm x 2.5mm, 1.81 dwt 6, 14kt yellow, $ Stone, 2-5mm x 2.5mm, 1.76 dwt 6, 14kt yellow, $ Stone, 3-5mm x 2.5mm, 1.88 dwt 6, 14kt yellow, $285. (Stones sold separately) F. R41401 Mother s Devotion Locket, 3mm cubic zirconia, 22.5mm x 16.5mm, sterling silver, $81. (Shown with CH12, sold separately) G. R41700 My Mother, Forever My Friend Pendant on 18 Cable Chain, 30.75mm x 14.75mm, sterling silver, $60. H Diamond Anniversary Band, 1/6 ct tw, 14kt yellow, 30 $ Diamond Anniversary Band, 1/6 ct tw, 14kt white, 30 $ Diamond Anniversary Band, 1/6 ct tw, 14kt red, 30 $532. J Stackable Ring Mounting for Mother, 2mm width. 1-Stone, 1-4mm x 1.5mm, 2-1.5mm, 2.12 dwt 5, 14kt yellow, $ Stone, 2-4mm x 1.5mm, 3-1.5mm, 1.94 dwt 6, 14kt yellow, $ Stone, 3-4mm x 1.5mm, 4-1.5mm, 2.05 dwt 6, 14kt yellow, $309. (Stones sold separately) A Mom Photo Album Locket, 27mm x 20.5mm, sterling silver $78. E Square Trinket Box with pearl frame and blue velvet interior, $ (Shown on CH12, sold separately) F Diamond Ring, 0.06 ct tw, 14kt yellow, 33 $386. (Three shown as stackable) B Journey Diamond Pendant, 3/8 ct tw, 14kt white, 110 $1,119. Mounting G Diamond Earrings, 0.08 ct tw, 14kt yellow, 33 $598 per pair. # (Shown with CH164, sold separately) H Freshwater Cultured Dyed Chocolate Pearl Station Necklace, C. R41721 Journey of Motherhood Pendant, 1.2mm,.06 ct tw, 14kt white, 5.5mm-6mm, 14kt yellow, stone code: D, 18 $ , 70 $755. (Shown with Genuine Pink Sapphire and Diamond) J Freshwater Cultured Dyed Chocolate Pearl Lever Back Earrings, D Stone Mother s Pendant, 18.25mm x 17.5mm, 2.15 dwt 6,14kt white 7mm-7.5mm, 14kt yellow, stone code: D, $93 per pair. $340 mounting only (Shown with 2.5mm Imitation Garnet, Aquamarine and Emerald, sold separately), (Shown with CH12, sold separately) Visit us online at or call to order.

17 FA S H I O N Color stories 2008 Blue Music... THE BLUE MUSIC COLOR PALETTE NEOCLASSICAL DETAILS IN MEDITERRANEAN ARCHITECTURE What stories will the colors of 2008 tell? Trend experts predict that 2008 will be a year of change for U.S. consumers. Trends are reflections of society s concerns and their desires influenced by current events such as politics, growing concerns for the ecology, even the entertainment industry. Where do trends start and how do they trickle down to the products consumers purchase? Trend forecasters research consumer behavior, monitor politics and have their fingers on the pulse of the global market. They search for influencers, such as the elections in the United States, the Olympics in China, the rising consciousness of renewable, sustainable resources and life in balance with nature. They even consider the impact of the entertainment industry, art and architecture. From this, they predict the seasonal transitions of colors. Researchers pass their findings on to fabric weavers and manufacturers who in turn create the designs of the future. Designers then apply their magic to their creations, interpreting trend patterns that will evoke emotional resonance with consumers. Eventually, these trends filter down to the mainstream market on mass scales, reinterpreted and applied to the various products consumers purchase. The knowledge that trend research and forecasting provides is a valuable tool that you can use to reach the emotional side of consumers. By understanding consumer mindsets and desires, you can merchandise effectively with products and marketing that instantly induce a feeling or mood that reinforces a clients desire to purchase. Relevant communications increase your sales and your profits. Blue Music is our second featured trend story for This color palette speaks to consumers desires for trust, clarity and balance in the years ahead. It includes all shades of blue from the warm violet end, to the cool green end of SHOWCASE SUggESTION FOR BLUE MUSIC COLOR STORy simple accents are available at local CraFt stores 18 the stuller standard april 2008

18 Special SelectionS for Her D H K A J B E C L F M N G A Panache Freshwater Cultured Pearl Stretch Bracelet, 6mm to 7mm, 92, 7 $36. B. BRC355 Stretch Bracelet with Multiple Diamond Cut Beads, 8mm, sterling silver, 6.5 $51. C Panache Freshwater Potato Cultured Pearl Stretch Bracelet, 5.5mm to 6mm, 7 $95. D Freshwater Cultured White Coin Pearl Earrings, 12mm to 13mm, sterling silver, stone code: E, $15 per pair. E Freshwater Cultured White Coin Pearl Station Bracelet, 12mm to 13mm, sterling silver, stone code: E, 7.5, $24. Necklace, 18, $60. F Cubic Zirconia Lever Back Earring, 7mm, 14kt yellow, $125 per pair. G Cubic Zirconia Three Strand Necklace, 3.5mm, 14kt yellow, 16, $422. H. R41007D Diamond Cross Pendant, 0.01ct tw, 14kt yellow, 30 $129. (Shown on CH12, sold separately) J. R16219 Diamond Cross Pendant, 0.01ct tw, 18mm x 12mm, 14kt white, 30 $88. (Shown on CH12, sold separately) K. R16134 Cross Pendant, 21mm x 15mm, 14kt yellow, $130. (Shown on CH617, sold separately) L Genuine Smoky Quartz Briolette Earrings, 12mm x 8mm, 14kt yellow, 126 $267 per pair M Created Moissanite Earring, 1 ct tw (diamond equivalent), 5mm, 14kt yellow, 1 $706 per pair. N. CH844 Fancy Link Chain, 9mm, 14kt two tone, 17 $5,104.

19 Rugged gifts for Him E F A B C D G K J H A. R16111 Cross Pendant on 24 Curb Chain,46mm x 31mm, sterling silver $84. B. R16155 Cross Pendant, 39mm x 26mm, 14kt yellow $456. (Shown with CH524, sold separately) C Gents Cuff Link, 12 mm, stainless steel $108 per pair. D Gents Tie Bar, 7mm x 64.75mm, stainless steel $57. E Comfort Fit Band, 6mm, stainless steel/rubber, size 11 $138. F Design Comfort Fit Band, 6mm, titanium, size 11 $175. G Created Moissanite Gents Bracelet, 1 ct tw, 14kt yellow, 1 $2,485. Mounting # BRC312 H. BRC368 Men s Bracelet, 6.25mm, stainless steel, 8 $123. J. BRC362 Men s Bracelet, 12mm, titanium/18kt yellow, 8.5 $432. K Travelers Genuine Swiss Army Knife, brushed stainless steel $37. Visit us online at or call to order.

20 S T U L L E R S T U D I O Family Jewelry & stuller studio Make more money with less inventory Let s face it: you can t stay in business without sales, and you can t make sales without inventory. Or can you? Let s ask the question another way: if you can t stay in business without sales, and you can t keep at today s prices all the inventory you need, then how can you generate more sales without adding too much inventory? Easy: promote Family Jewelry ring and pendant sales through Stuller Studio. Just order our very attractive Family Jewelry display featuring your choice of 12 beautiful stone-set gold plated alloy samples or our Personalized Family Jewelry kit (featured on page 23 of this Stuller Standard). Stuller Studio and the Stuller Family Jewelry program is your secret and very affordable weapon. (The FJ Kit is normally $99, but $75 for the month of April), because it enables you to get your customer s attention; promise a reliable delivery date less than six days, then close the sale on a almost-never-returned custom made ring or pendant, masterfully set by our stone setters! Of course, you could order the blank mountings and set our stones or your stones yourself, but here s two reasons why you may want us to do the setting for you: not only will our master setters do the same quality job your setters would do, but more importantly, if we set the stones, your time will free up, which means you can spend more time on the floor selling! No questions about it: selling makes more money than setting. Think about it and give us a call, or click stuller.com. R43035 R16603 R16604 R16644 Focus on rosary rings Why do teachers make students take notes? Because they know when mind and body are engaged, students focus and remember the material better. That s human nature, and that s the same reason why many cultures have long used all sorts of beads to aid in prayer; to count the prayers, yes, but primarily to help quiet the distractions, so the praying person can better contemplate the important spiritual truths they are seeking. We have many traditional rosaries, but we also have the best collection of Rosary Rings! Check out our newest, wider version (R43035) a 5mm width that builds upon our three existing popular styles. Why are our Rosary Rings the best? Because we use our own proprietary metal molds, which give patterns and castings a precision of shape and surface that simply cannot be achieved by ordinary wax injection. Furthermore, we stock all Rosary Rings in 14ky, 14ky, 10ky and Sterling, and whole ring sizes 4 to 12, so the bead configuration can go seamlessly all around the finger with no interruption for a shank at the bottom. Visit and search rosary rings to see and order from our entire collection. Mountings: Pricing is suggested retail in u.s. dollars at a $850 gold market; $1,500 platinum, subject to change without notice. sold by dwt, plus labor and invoiced by exact dwt shipped, blank, without stones. Most items available set stuller studio with your choice of stones from our exclusive inventory within five days and are non returnable, non cancelable. Photography: Most products enlarged to show beauty of detail. Finished Jewelry: Pricing is suggested retail in u.s. dollars at a $850 gold market; $1,500 platinum, subject to change without notice. sold by piece, not weight, with stones featured. Product stone code descriptions can be found on pages of The Finished Jewelry Collection, Vol. 67. Many styles exclusive copyright of stuller, Inc. and strictly enforced. 22 the stuller standard april 2008

21 Personalized Family Jewelry why are you and your customers still waiting to order customized family jewelry? take family jewelry one step further Personalize it! we are able to laser etch the names and set the stones of your choice on beautiful family jewelry and deliver it to your store in 7 days or less. to order your Personalized Family Jewelry Kit just call us at or order from the website at

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